Source: Bloomberg

The German company's direct investment in China hit a record high last year to reach nearly 12 billion euros ($ 13 billion).Although the EU has strengthened the review of these investment for security reasons, German companies are still keen to expand in the world's second largest economy.

The German Economic Institute reported based on the German Bank of China, the proportion of investment in China in Germany's foreign direct investment rose to 10.3%in 2023, the highest since 2014.The report found that investment funds come from the retained profits of mainland China and Hong Kong companies controlled by German and capital.

Germany issued a strategic report on China in July, calling on large German companies to reduce its dependence on China and adopt a stronger policy to cope with foreign investment -related risks.Out of concerns about the transfer of military technology, the European Union also took action to strengthen the supervision of direct foreign investment, which caused criticism in Beijing.

The report said that the latest investment data shows that there is no diversified decentralization trend towards the region outside China.The report also stated that the data in the workshop show that the growth of investment is mainly driven by large -scale companies.

"Especially the large -scale German companies still regard China as a huge market that is growing and has a huge customer base," said Jürgen Matthes, the reporter.He added that German companies often plans to put more business activities in China to exacerbate the risks of hedging global trade tensions.

The survey released by the German Chamber of Commerce in Greater China showed that 73%of the company's plan to increase investment in the next two years, while the proportion of small companies was only 50%.

The analysis of the German Institute of Economic Research is based on international revenue and expenditure data. Therefore, it is not distinguished from green space investment involving new facilities in China, or a German company purchased Chinese financial assets.

The

Report also shows that foreign direct investment such as loans and German enterprises from equity injection in China has been declining.

According to another report released this week, the US Rongding Consulting stated that data from the German Bank of China shows that in order to reduce costs, German companies are increasingly spent more and more profits in China in China to conduct in China to conduct in China.invest again.